Thomas is selling his home in Putnam County, West Virginia for $320,000. An independent appraisal conducted during the transaction establishes the property's fair market value at $340,000. The county assessor has the property on the tax rolls with an assessed value of $192,000. Thomas's buyer asks the listing agent to confirm the correct assessed value used for property tax purposes. Which of the following best explains the relationship between these figures under West Virginia law?
Correct Answer
B) The assessed value of $192,000 is incorrect because WV law requires assessed value to equal 60% of the higher of the sales price or appraised value, which would be $204,000.
West Virginia assesses Class III/IV real property at 60% of appraised fair market value. With a $340,000 appraised value, the correct assessed value is $204,000, so the $192,000 figure (which is 60% of the $320,000 sales price) is incorrect.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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